Meta Workforce Reduction: Layoffs and Severance Details

Meta will be implementing a workforce reduction of 10% in May 2026, which translates to about 8000 employees across various regions and divisions. This announcement marks the initial phase of layoffs, with another round anticipated later in 2026. Janelle Gale, who serves as Meta’s chief people officer, communicated this “unsettling” information in a memo directed at the staff.

Gale informed employees that some organisational changes would necessitate the dismissal of approximately 10% of the workforce on May 20. Alongside the layoffs, the company will also be eliminating over 6000 vacant roles, as outlined in the memo.

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Severance Package at Meta

According to Gale, employees who are affected will be offered “generous” severance packages to assist them during this challenging period. For those located in the US, the severance includes 16 weeks of base pay, plus an additional two weeks for each year of service with the company. Furthermore, Meta will continue to cover their health insurance for a duration of 18 months, extending to both the employees and their families.

For employees situated outside the US, Meta aims to provide comparable severance benefits, though specific details might vary based on local regulations and country-specific policies. Additionally, the timing and process of these layoffs could differ by region.

Lastly, Meta will offer career support services, including assistance with job searches and transition services. Currently, the company has not disclosed the precise number of employees affected or the specific regions impacted.

Must read: Meta to cut 8,000 jobs, leave 6,000 roles unfilled as AI spending climbs to $169 billion: Report

Reasons Behind Meta’s Layoffs

In her communication, Gale indicated that the job cuts were essential for saving funds to invest in other sectors. She noted that the company was making these adjustments as part of its ongoing effort to operate more efficiently and to balance the other investments being pursued.

She acknowledged that this decision was not an easy one and would involve parting ways with individuals who have significantly contributed to Meta during their tenures.

Meta is expected to invest millions into AI, with projected capital expenditures for AI in 2026 soaring to $135 billion, up from the previous $115 billion. The company is allocating funds towards expanding data centre capabilities, securing AI chip agreements, and enhancing AI computing infrastructure, among other initiatives.